So I thought it time to actually dig into the drill results we...

So I thought it time to actually dig into the drill results we have under the belt and the current plans of the company. As a result of the below, I'm sure many will agree it will be interesting to see what is happening with the resource come July.

This was a slide in the annual report:


The combined resource as at Feb 2020 for Lost Dog and Black Cat (now Big Cat!!) was 185,000 oz at 1.75g/t. Since then we have produced circa 30k oz, and have an additional 24k sitting on the ground with mining paid for (revised down from 26k in the December quarterly update), so 130k oz presumably remains. Although recovery grades have exceeded PFS expectations. Plus there is 10k oz at Panther which is of a much better grade, with plant preparations in final stages to start processing that ore which will give us a decent sugar hit for approximately 5 months.

140k / 30k per year is roughly 4.6 years LOM in the ground, plus another 10 months in Mill ROM stocks.

The main question for me so far is how does the sustained higher than expected POG vs the PFS numbers of circa $1700 Aud affect the reserve for these known resources? Do we get an uplift just through the economics before we even start to factor the drill results?

Next, taking a look at the drill results from the most recent program, I'm fairly confident there is plenty of gold to be proven up - I think management are too, just quietly, given they have already started increasing tailings capacity for 10 years of mining operations (paid for).




In the PFS the original Lost Dog orebody was deemed to contain 125k oz recoverable across a 1200 meter section, then what can be inferred from the results below which identify the orebody to continue for at least another 700m (although expected to be much more than that)?

700 meters / 1200 meters = orebody 58.3% the length

125,000 oz * 58% = 72,875 oz of new reserve.

Now maybe apply a discount to this if you wish just for the sake of being a conservative investor, maybe it is 20% less area due to width? And maybe grade is 10% less on average?

72,875 oz * 70% due to width and grade = 51,012 oz


Then we had this in the quarterly update in January:



Key take away there is the over 500 meters of potential strike and potential source of primary mineralisation. It's deeper gold, but there is some very encouraging grade there. They also took the not so subtle gesture of renaming the tenement Big Cat from the previous name of Black Cat *slaps market with a cold fish*.

Something that hasn't really been discussed at length yet is the Lynx Prospect, fairly shallow gold there with good grade.




Then we had an additional 15,000m AC drilling lined up for the March quarter (results pending) with infill priority targets including Big Cat (was Black Cat), Lost Dog, Lost Dog East, Lynx, and Trans-Line PGE.

Next there is Aeromag survey being conducted this month, to generate new targets across the owned and paid for tenement.

But of course there is no gold left out there in Jaurdi, management just felt like drilling some infill holes in the dirt for shits and giggles.

For the record, anyone who wishes to plagiarise this post has my express permission to do so.